Currency in GBP
Last close As at 17/03/2023
GBP13.10
▲ −38.00 (−2.82%)
Market capitalisation
GBP880m
Research: TMT
WANdisco started 2023 on a strong note, announcing a $6.6m data-migration contract with a global telecom service provider. This is the third telecom provider to choose WANdisco for data migration, highlighting how it is becoming a ‘go-to’ supplier for large-scale Internet of Things (IoT) deployment. It is encouraging to see a deal this early in the year; historically, deal flow has been strongly weighted to the second half. This win supports our estimates, particularly revenues, given the up-front recognition of this deal, and our conservative assumptions on the rate of data consumption/revenue recognition of commit to consume (CtC) deals.
WANdisco |
Starting 2023 with $6.6m telecom IoT win |
Contract win |
Technology |
10 January 2023 |
Share price performance Business description
Analysts
WANdisco is a research client of Edison Investment Research Limited |
WANdisco started 2023 on a strong note, announcing a $6.6m data-migration contract with a global telecom service provider. This is the third telecom provider to choose WANdisco for data migration, highlighting how it is becoming a ‘go-to’ supplier for large-scale Internet of Things (IoT) deployment. It is encouraging to see a deal this early in the year; historically, deal flow has been strongly weighted to the second half. This win supports our estimates, particularly revenues, given the up-front recognition of this deal, and our conservative assumptions on the rate of data consumption/revenue recognition of commit to consume (CtC) deals.
Year end |
Revenue |
Bookings ($m) |
Ending RPO* |
EBITDA adjusted ($m) |
EPS** (c) |
EV/sales (x) |
Net cash ($m) |
12/20 |
10.5 |
10.2 |
4.9 |
(22.2) |
(57.3) |
67.6 |
18.1 |
12/21 |
7.3 |
11.9 |
9.4 |
(29.5) |
(57.9) |
97.5 |
25.9 |
12/22e |
19.0 |
116.0 |
105.0 |
(19.6) |
(38.3) |
37.5 |
24.5 |
12/23e |
28.0 |
120.0 |
197.0 |
(12.6) |
(25.0) |
25.4 |
15.5 |
Note: *Ending RPO = beginning RPO + bookings – revenue. **EPS is normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The $6.6m data-migration contract is with a European-based global telecom services provider. It is for an initial one-off migration of IoT data from the client’s data centre to the cloud. Once migration is complete, WANdisco expects the client to launch a range of IoT services. Hence, we see scope for follow-on CtC data-migration deals from this client as it launches more IoT services and starts generating significant data flows.
This is the third telecom provider to choose WANdisco and comes less than a month after a record $31m win with a tier 1 global telco supplier. The telco industry is strategically important for WANdisco – a core, growing market that supports multiple verticals with their own IoT use cases, providing a healthy pipeline of opportunities.
It is encouraging to see deal flow this early in the year. We see it as a good indicator of the strength of WANdisco’s pipeline, as historically deal news flow has been strongly weighted to the second half of the year. Although smaller than some of WANdisco’s recently announced deals, this agreement is more than twice H122’s $2.5m average deal size. The agreement supports our estimates, particularly revenues, given the up-front recognition, and our conservative assumptions on the recognition of CtC deals.
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Research: Healthcare
AFT Pharmaceuticals has presented its key CY22 highlights and strategic priorities for CY23 in a letter to investors. In addition to new product launches in its domestic markets, we expect further international market expansion following focused investments across the UK, Europe and China. Maxigesic remains the main commercial driver with plans to launch new variants internationally, including Maxigesic IV in the US, which was unexpectedly delayed due to FDA observations on product packaging. The R&D pipeline remains full, with multiple projects under development, including the NanoSURF nasal nebuliser, targeting FDA submission by the end of CY24. Importantly, despite its revised guidance in November 2022 (reflecting the investment in new launches and promotional expenses), AFT remains on track to pay a maiden dividend at the end of FY23. We will update our valuation once the full-year results are released.
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